Read the attached case study (Links to an external site.) and then answer the following requirements:
Tax inversions have occurred infrequently over the past 30 years. Describe a tax inversion and the factors that impact a company’s decision to complete a tax inversion.
The earliest inversions were usually in tax haven countries. The companies subsequently relocated their headquarters to Europe. Why did these companies decide to move headquarters to European countries?
Most recent inversions either meet a substantial activity test or are accomplished through mergers. What companies are the most likely targets for these types of inversions?
A primary benefit of an inversion is avoiding U.S. tax on foreign-source income. How do multinational companies also use inversions to reduce U.S. tax on U.S.-source income?
Using the information in Table 2, calculate Transocean’s effective tax rate for each of the four years (1998, 2000, 2009, 2015). Estimate the dollar amount of the annual reduction in taxes for the initial move to the Grand Cayman Islands.
The Congressional Budget Office (2017) (Links to an external site.) reports that 60 inversion transactions have occurred. The CBO estimates that the average annual reduction in U.S. tax expense for these companies is $65 million. What is the amount of total annual revenue loss to the U.S. government? What is the amount of total annual revenue loss to the U.S. government as a percentage of total corporate taxes (search for the total corporate taxes in the CBO report or other online source)?
The U.S. recently reduced the top statutory corporate tax rate from 35 percent to 21 percent. In addition, the U.S. changed from a global to a territorial tax system for multinational corporations. Evaluate the likely effects of these tax law changes on inversion activities.
Should companies be allowed to enter into inversions? Consider the perspective of shareholders and the U.S. Treasury in developing your response. Do you believe the changes in U.S. tax law to lower corporate taxes will eliminate inversion activity permanently?
Albring, S. M., Elder, R. J., Franklin, M. A. (2019). Transocean and the history of tax inversions. Issues in Accounting Education, 34(1), 1-12.
Congressional Budget Office. (2017). An analysis of corporate inversions. https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53093-inversions.pdf (Links to an external site.)
Write a paper of 10-12 pages, double-spaced in length, not counting the title and the reference pages, which you must include. Submissions in excess of 12 pages are acceptable.
Copy and paste each one of the Questions into your paper in bold type (Questions are to be single-spaced) to ensure you have answered each of the Assignment Requirements.
Use terms, evidence, and concepts from class readings, including professional business language.
Cite at least 5 credible, academic or professional sources supporting your answers for this assignment. The CSU Global Library (Links to an external site.) is a great place to find resources.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.